TaxTMI 
TaxTMI 
Exporter in India had issued a Purchase Order to a nominated Agent viz. PQR situated outside India, for transportation of goods by Air for export. PQR in turn had entrusted this work to XYZ for which XYZ had charged to PQR in foreign currency. Is it an export of service and therefore XYZ not liable to pay GST on the amount recovered from PQR?
Export of Service by freight forwarder
16 Oct 2021 
18 Replies 
6884 Views Asked by
Place of supply rules determine whether freight forwarding is export of service or taxable as intermediary.
Determination of whether freight forwarding is an export hinges on whether the forwarder acts on his own account as principal-buying and reselling transportation (with bundled ancillary services) so that place of supply is the destination outside taxable territory and the service is export-or acts as an intermediary, accounting only for commission, in which case place of supply is his location and GST applies, subject to refund provisions for exporters. (AI Summary)
Determination of whether freight forwarding is an export hinges on whether the forwarder acts on his own account as principal-buying and reselling transportation (with bundled ancillary services) so that place of supply is the destination outside taxable territory and the service is export-or acts as an intermediary, accounting only for commission, in which case place of supply is his location and GST applies, subject to refund provisions for exporters. (AI Summary)